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North Carolina tax department vows to resolve overpayment refund backlog

August 19, 2010

Not surprisingly, a little public attention followed by public and political outrage has prompted North Carolina tax officials to change their tax refund tune.

As you might recall, the Tar Heel State tax department had interpreted a tax law change in such a way that it could allow the state to keep tax money that residents had inadvertently overpaid.

The problem was that although the North Carolina Department of Revenue computers flagged such returns, the overpayments weren't official until a human reviewed them.

And if that personal look-see didn't happen within three years, the state got to keep the excess payments instead of refunding the money to the overly-generous taxpayers.

But on Tuesday, just two days after the no-refund story broke, state tax officials announced that dozens of employees will now review the approximate 230,000 computer flagged returns with the goal of resolving them all by Dec. 22.

The plan, said Revenue Secretary Kenneth Lay, is to work equitably and fairly regardless of whether additional payments
are owed or taxpayer refunds are due.


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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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